0 U.S. MUST WIN RACE FOR SCIENTISTS See Page 2 d'Y Sir ~igaut ~IaiI41j ... Latest Deadline in the State CLOUDY. SHOTWEE s 'FnTTR.'PA[;VC' VOL. LXVII, No. 29S INADEQUAT E FUNDS: Local Tax Base, Must Be Spread k, BY LEE MARKS Daily Managing Editor (Editor's Note: This is the third in a series of four articles on Ann Arbor's financial situation. Today's article discusses limitations on increasing revenue.) Ann Arbor's only'major tax is the property tax-and therein lies the source of its difficulty. With only one type of tax Ann Arbor is dependant on state taxes, University payments and a host of small revenue producers to balance the budget. A serious complication is that there is a limit to how high the property tax can go--and that limit has been reached. Must Diversify Base Most authorities agree that if the city is to substantially increase revenue it must diversify the tax base. This is easier said than done. In order to diversify the tax base, that is levy additional taxes ANN ARBOR, MICHIGAN, SATURDAY, AUGUST 4, 1956 kvu"b ritt" Ike Extends Political Aid To Backers WASHINGTON UP) - President Dwight D. Eisenhower was re- ported taking concrete steps yes- terday to aid down-the-line GOP supporters of his legislative pro- gram as a part of his efforts to "rebuild" the Republican party. In consultation with some Sen- ate candidates before they left Washington for home campaigns, the President was said to have held out the prospect he will give them what personal help he can before the November election, The candidates understand that this help will be extended through warm endorsements voiced by President Eisenhower if his cam- paign schedule takes him into their states. If he is forced to chose between areas he will visit personally, some of his all-out senatorial backers believe he will pick their states. Poses for Pictures In at least one instance, Presi- dent E1senhower has found the time since his return to work in the White House after his June 9 intestinal operation to pose for campaign pictures with a Repub- lican senator who went down the line for his legislative program. Most other GOP candidates who display pictures of President Ei- senhower and themselves will be showing somewhat outdated pho- tos. President Eisenhower told a news conference Wednesday one reason he decided to run again + was a belief that the Republican party "needed rebuilding so badly." Seeks 'Liberalized' Party Those who talked to the Presi- dent recently say he has in mind what he has called the "liberal- izing" of the party along the "progressive-moderate" line he has laid out in the past. Associates said President Eisen- hower has regarded it of prime importance in this year's cam- paign to get into Senate and House races as many Republicans as possible whose political philo- sophy matches his own. He has done this in encouraging the Kentucky senatorial bids of former Ambassador John Sher- man Cooper and Thurston Mor- ton, former State Department of- ficial. President Eisenhower is credited with nudging former Secretary of Interior Douglas Mc- Kay into the Oregon senatorial race and with encouraging Gov, Arthur B. Langlie to run for the Senate in Washington. Doesn't Take Sides Although President Eisenhower declined to take sides in a Wis- consin Republican senatorial fight, if Sen. Alexander Wiley (R-Wis.) wins renomination he can expect some glowing presi- dential praise for his support in Congress of the Eisenhower pro- gram. The President's campaigning, however, will be limited by health and other considerations. Presi- dent Eisenhower said his physi- cians told him at the time of his June operation that he would not regain his full vigor for four months. Stevenson Asks Denocrat Unity other than the preperty tax, the city must buck state law. If it is going to raise the prop- erty tax the city will have to change its charter. The city charter provides a maximum prop- erty tax for current operations of seven and a half mills, the rate now levied, although a majority vote could increase this to 10 mills on a year-to-year basis. City Controller Loren Jedele . points out, "If state taxes were withheld we'd be in serious shape. We should have another local tax revenue." Homne Rule Act Basic problem lies in the word- ing of Michigan's Home Rule Act, which permits municipalities to levy exise taxes but does not define exises. Two taxes have been considered: an admissions tax and an income tax. Ann Arbor voters have twice voted against proposals. for an admissions tax. The income tax has been declared illegal in two test cases by the Michigan Su- preme Court. There is some ques- tion whether an admissions tax would be an exise tax within the meaning of the law., Prof. Arthur Bromage of the political science department, a I former City Council member and expert on municipal government, claims, "For major revenue we would have to levy a local income tax on wages, salaries and net' profits." Income Tax Needed Both Prof. Bromage and City Administrator Guy Larcom indi- cated the income tax, if passed, would solve the financial difficul- ties. It might even, they said, allow the city to reduce the property tax. The Michigan Municipal League, an association of cities and vil- lages, has tried to induce the State Legislature to pass a bill specific- ally authorizing local income taxes. The Legislature during its last session defeated the bill. Prof. Brommage said the legis-I lature's action could be interp-. reted as indicating they were against the income tax or just against clear legal empowerment of the tax. With efforts of the MichiganI Municipal League to get income taxes authorized rebuffed and re- fussal of Ann Arbor voters to pass the admissions tax, the city's at- See TAX, Page 4 'Suez Crisis Aids U.S. Coal Exports' HARRISBURG, Pa. ()--John L. Lewis yesterday sized up the Suez Canal crisis as a possible boon to American coal exports. 'DUMP-NIXON TRY': Court Drops Criminal A ccusations McKeon Convicteds On 2 Lesser Counts; Give Sentence Today PARRIS ISLAND, S. C. (P--S. Sgt. Matthew C. McKeon last night was cleared of manslaugh- ter for marching an unruly pla- toon of Marine recruits into Rib- bon Creek April 8. Six of the youngsters drowned. A seven-man military court convicted him on two lesser counts. They make him liable to a maximum sentence of three years in prison and a dishonorable discharge. But Marine officials said the maximum is unlikely. McKeon was convicted of vio- lating a general order against drinking on duty, a felony with a maximum two-years prison sen- tence. He also was convicted of negligent homicide,, a misdemean- or with a maximum one-year sen- tence. Cleared of Oppressing Troops Besides manslaughter, McKeon was acquitted of oppressing troops and drinking in front of a re- cruit. McKeon admitted drinking before launching the disciplinary march into the creek. But he passed a sobriety test afterwards. Sentencing was put off until today. Under military law, the same tribunal that acted as the jury also will pass sentence. The tall, 31-year-old drill in- structor and career Marine took the favorable verdict standing rig- idly at attention. His face be- trayed no emotion. McKeon Congratulated But a moment later, he broke into a broad grin as friends rushed forward in the courtroom to pump his big hand. He had spent a part of the afternoon in prayer at the Roman Catholic chapel on this vast training base. "I fe& good, honest to God," said the sergeant who left Wor- cester, Mass., eight years ago to become a Marine. He had served in Navy combat previously during World War II. McKeon's wide-eyed brunette wife, Betty, 28, who stood loyally by him through the 18-day court- martial, wept at the verdict, which .the jury took six hours and 4 minutes to reach. Wife Feels Stunned "I just feel stunned," she sobbed, before her nervous tears gave way to a radiant smile. One of those who congratulated McKeon was Maj. Charles B. Se- vier, who prosecuted the case for the Marine Corps. He shook Mc- Keon's hand and told him: "You just keep on going like you're doing." Sevier told reporters of the most controversial court-martial in 180 years of proud Marine history: "I think it is a fair finding." Defense lawyer Emile Zola Ber- man, a noted New York trial at- torney who represented McKeon without fee, said: "I am not appealing anything if this boy is kept in the Corps." Nevertheless, the verdict auto- matically will be reviewed by the office of the secretary of the Navy, the agency that convened the court-martial. McKeon will remain at liberty, pending sentencing, as he has since May 23 when he was re- leased from the base jail. Dulle Ang French Vow To Oppose Nasser Coup British Call Reservists In 'Emergency' Move PARIS (P)-French government leaders solemnly assured the Na- tional Assembly yesterday they will "use every means" to defeat Egyptian President Gamal Abdel Nasser's Suez coup. Premier Guy Mollet and Foreign Minister Christian Pineau, cheered by all but the Communist mem- bers, said the government is seek- ing every way for a peaceful solu- tion but is preparing for strong military action if this fails. Across the English Channel, the British g o v ern m ent likewise worked at a double-barreled pol- icy. It was calling up thousands .of army reservists under a royal proclamation of' "great emer- gency" and setting in motion the gears for a 24-nation cQnference to install international control over the Suez Canal. Nasser May Decline But advance indications from Cairo were that Nasser would de- cline his invitation to the confer- ence, called in London for Aug. 16. Nasser broke off a vacation in Alexandria and returned to Cairo last night to study the implica- tions of the American-British- French bid to submit his July .26 nationalization of the canal to an international regime guaranteeing open passage to. ships of all. Earlier, official Egyptian sources said the three-power plan "com- pletely disregards the right of Egypt to exercise sovereignty within its boundaries." Dulles Returned United States Secretary of State John Foster Dulles returned to Washington from his London conference with British and French foreign ministers and ex- pressed hope it had produced a solution of the Suez crisis that would avoid "the danger of vio- lence." The three-power communique accused Nasser of an arbitrary seizure of international facilities for national purposes. Russia, one of the signatories of the 1888 convention guarantee- ing the international character of the canal, got her invitation along with the rest. Moscow Noncommittal Moscow remained officially non- committal, but Western diplomats were hopeful the Russians would attend. They noted Soviet Com- munist party boss Nikita Kruschev in a speech this week urged a settlement by negotiation. India's Cabinet met to consider' the crisis and there were strong indicationsthe government might propose neutral Geneva as the conference site, instead of London. Reliable indications were that West Germany, Spain, Japan, Sweden, Pakistan and New Zea- land all would attend, 24 Nations Invited Other nations invited, aside from the sponsoring powers, were Italy, Netherlands, Turkey. Aus- tralia, . Ceylon, Denmark, Ethio- pia, Greece, Indonesia, Iran, Nor- way and Portugal. In a previous dispatch the Associated Press erred in saying Iraq was invited. The list includes signers of the 1888 Constantinople Convention declaring the canal an interna- tional wtaerway, the main mari- time nations using the canal and other countries whose commerce depends on it. The Israeli ambassador to Lon- don, Eliahu Elath, protested of- ficially at the Foreign Office to- night against Israel's having been left off the list. AnF uvflnne rfit,-nri n tin S Calls Act 4 Suez of Retaliation' U WIN:Seesoe Ambassador Visits 'U' Burmese For Solution By ADELAIDE WILEY At Meeting U Win, ambassador from Burma, says he has come.to this Univer- sity to be a kind of "step-father BM;__*___ for our thirty-four Burmese stu- Bases Nationalization dents over here." n rievances Indicating his co-worker Thant by Gyi, Burmese education attache, Fanciedb Egypt U Win added, "And he is their K foster father." Bothdmen laughed WASHINGTON oP)- Secretary pleasantly, enjoying the atmos- lof State John Foster Dulles last phere in the International Center night called Egypt's sudden move U Win is tallish, with a shock . in nationalizing the Suez Canal 'of white hair that contrasts with) . "an angry act of retaliation against his tan skin and beige suit. In a fancied grievances." charming accent. he remarked In a nationwide radio-television proudly that his eldest son is in report, however, he expressed con- Washington, "studying in summer fidence a 24-nation conference set schol . for Aug. 16 will assure continued Family Visits Classes "international operation" of the His wife, daughter and other great waterway. two sns are in Anil Arbor with Secretary Dulles spoke from the W hte House in a report to the him, and all will remain until"Atfs